The Trifecta: Price Analysis, Cost Analysis, and Cost Principles

Summary

The US Government relies on contractor pricing proposals and cost representations to establish prices and/or reimburse actual costs. In this regard, the burden is on the buyer to demonstrate that prudent business actions have been taken to determine that the prices paid to suppliers are fair and reasonable in accordance with the Federal Acquisition Regulation (FAR) Subpart 15.4, Contract Pricing. In addition, FAR Part 31, Contract Cost Principles And Procedures, contains cost principles and procedures for the pricing of contracts, subcontracts, and modifications to contracts and subcontracts whenever cost analysis is performed. Consequently, it is also incumbent upon the analyst to ensure that proposed costs are in conformance with FAR Part 31. This course is designed to provide specific guidance in performing and documenting price analysis and cost analysis for goods and services acquired for US Government contracts and subcontracts. Students will benefit from attending either one day, two days, or all three days of this course, depending on the extent to which they utilize/need to understand price analysis and/or cost analysis.

Learning Objectives: Upon completion of this course, the participant should know the US Government’s requirements for conducting price analysis and cost analysis for US Government contracts & subcontracts, including

Criteria regarding allowability/unallowability of the selected cost elements included in FAR Subpart 31.2

Day 1: Price Analysis

This course is designed to provide specific guidance in performing and documenting price analysis for commercial and non-commercial goods and services acquired for US Government contracts and subcontracts.

Day 2: Cost Analysis

This course is designed to provide specific guidance in performing and documenting cost analysis for goods and services acquired for US Government contracts and subcontracts in those situations when Truthful Cost or Pricing Data (formerly know as Truth in Negotiations Act) applies, or when price analysis alone is insufficient to demonstrate the reasonableness of lower-tier suppliers’ prices.

Day 3: Cost Principles

This course is designed to provide specific guidance in understanding FAR Subpart 31.2 cost accounting expectations for segregation, accumulation, and distribution of direct and indirect costs, and the identification of selected costs as allowable or unallowable. To read more about the Cost Principles and register for just this one day session rather than the 3 day Trifecta class, please click here.

Continuing Education Credits

5.5 CLE/0.6 CEU/ 6.5 CPE (Finance) credits may be earned for each day of this course. One day is recommended for 8 CLP credits.

This course has been approved for CLE in CA, PA, VA and TX. Because this activity has been approved in another CLE jurisdiction, you may also receive credit for participation in AK, AZ, AR, CO, FL, HI, IL, ME, MT, NJ, NY, ND, and WI (additional state requirements may apply). If you are seeking CLE credits for a jurisdiction other than the ones listed above, please contact us for additional information.

This
course can be submitted to Project Management Institute (PMI) for PDU.
Upon their approval, it may be worth 5.5 PDU credits for each day.